MSFT Down In Weak Market Markets are diving in the negative this morning due to a spike in unemployment benefits to an 8-month high. Shares of MSFT are down, exponentially more than the rest of technology. Upcoming catalysts include entrance in the tablet market at some point;
Windows Phone 7 adoption with hardware partner
Nokia; strides against current market leaders in cloud computing; retooling the
Bing /
Yahoo! partnership (or just buying them outright); and continued momentum of
Kinect and the next gen console. The stock currently trades at
8x Enterprise Value / TTM Free Cash Flow, inexpensive compared to historical trading multiples.
Microsoft Is A Neutral Rated Stock Because Of Treats To Dominance (American Banking News) Equities research analyst Shalu Saraf at Zacks Investment Research reiterated a Neutral rating on shares of Microsoft citing increased competition, challenges to Microsoft’s dominant position in the PC market by new-age devices, as well as the transition to the cloud. Additionally, the new Windows 7 OS is up against strong competition in an overcrowded market.
Read » Microsoft's Stalled Growth Won't Create Long-Term Value (Forbes) Microsoft has caught the “Wal-Mart Disease;” constantly trying to do more of what it always did, hoping it can regain old results. Even as the market keeps shifting. In stalled companies, executives cut costs in sales, marketing, new product development and outsource like crazy in order to prop up earnings. While Microsoft had higher earnings than last quarter, it wasn’t because customers were excited about their products. And smart investors know the ongoing effort to “manufacture earnings” does not create long-term value.
Read more from Matt Rosoff at Business Insider as to the crazy ideas to try and get Microsoft's stock soaring.
Read » Value Investors Flocking To Microsoft (Guru Focus) Most value investors remained on the sidelines through the tech bubbles of the past. But in recent years, “old tech” stocks are beginning to appear in the portfolios of dyed-in-the-wool value investors, who believe they are a great deal, while being shunned by other investors. Microsoft is one of them. Microsoft had 10-year record net income last year and trades at only 10.5x earnings. Microsoft is an enduring tech stock with a strong balance sheet and a stock price weighed down by public perception.
Read » ETF Turns Positive On Intel And Microsoft (ETF Focus) PowerShares QQQ briefly moved into the green late yesterday after an earlier pullback thanks to strength in Intel and Microsoft. Microsoft was up more than 1% in the last hour of trading, while Intel added nearly 2%. The stocks are top holdings in the tech-heavy exchange traded fund (ETF), which tracks the 100 largest non-financial stocks listed on the Nasdaq.
Read » Microsoft Being Left Behind With Market Rise (Seeking Alpha) With the market continuing its upward rise, there are some high quality stocks that the market has left behind. Microsoft trades well below its historic multiple due to questions about the future of the PC in the wake of the tablet and smartphone. While the future is murky, the market may be pricing in too bleak a future. Microsoft is still dominant in operating systems with its Office line of products.
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